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Saturday 11 February 2012

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Liberty Properties has made headlines of late for its bold expansion plans that include multi-billion rand refurbishments to its premium property portfolio and an intention to expand its footprint in Africa.

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Liberty Properties, South Africa

Overview

This ambitious approach is synonymous with the pioneering spirit that has made the company a dominant force in the South African property industry since 1972.

 

The business has a retail, commercial and hospitality portfolio of over 1.5 million m2 in size and exceeding R20 billion, of which more than R17,2 billion is directly attributed to Liberty.

 

Liberty Properties is an independent, strategic company operating within the broader Liberty Holdings Group with a strong focus on property management, property development and asset management. Before 2008, Liberty Properties was purely responsible for the development and management of Liberty Holding’s property portfolio. Today, the business services both Liberty and third party clients.

 

The company is driven by a need to maximise sustained, real returns for its policy holders and investors, lucrative nvironments for its tenants and superior destinations for its guests. It is also committed to developing valuable investment products for its intermediaries to market.

Liberty Property Management

The key focus is the management of a spectrum of prestigious retail and commercial properties for the Liberty Group and third party organisations across Africa.

 

An expert services capability which includes Leasing and Lease Administration; Operations Management; Facility Management; Building Administration; Property Administration (Billing); Credit Control; Procurement; Finance and Tax.

 

 

Undisputed Retail Giants

Liberty Properties is recognised by the iconic brands it includes in its shopping centre portfolio. Heading the line up is the flagship investment, Sandton City with the adjoining Nelson Mandela Square. In addition the portfolio includes Eastgate, Liberty Midlands Mall, Liberty Promenade Mitchells Plain, Alberton City and Greenacres Shopping Centre. Situated throughout South Africa’s four major provinces (Gauteng, Kwa-Zulu Natal, Eastern Cape and Western Cape), these retail assets dominate their settings and offer quality tenants to the communities they operate in.

 

Each of these centres can stake claim to the fact they contribute significantly to the enhancement of the urban scene and the lifestyle of South Africans. Demand for space at these premier mega-malls is high and the portfolio’s retail vacancy rates remain low.

 

The company’s current expansion plans will entrench the demand for tenancy, and produce escalating rentals and property values – ensuring sustainable real returns above inflation for long term investors.

 

By developing and operating shopping centres, Liberty facilitates job creation, community and social development. The company ethos is to create and invest in property ventures which make a statement and make a difference in the lives of South Africans.

 

• Over 433,000m2 of retail space
• 7 shopping centres
• Over 970 shops and stores

 

 

A Big Name in the Hospitality Sector

Liberty Holdings is the largest owner of hotel rooms in the country. This hotel portfolio falls within the ambit of the Asset Management arm of Liberty Properties. The hotel portfolio currently includes eleven hotels, with over 2970 rooms and an open market value of R1.9bn or 12% of the total portfolio. Seven of these hotels are located in Gauteng, two in the Western Cape and one in the Eastern Cape and one in Tshwane. Managed by the Southern Sun Group, each hotel reflects an individual character and all provide quality, flair and warm hospitality.

 

With two new hotels in development, Liberty’s dominance in this sector will increase. Both the Stay Easy Pietermaritzburg hotel and the Umhlanga Garden Court are pegged for completion in early 2010 to take advantage of the 2010 World Cup Soccer and the high occupancy levels forecast for the region and other major cities countrywide.

 

 

High Powered Commercial Portfolio
Liberty Properties name coincides with a number of prime properties throughout the central business districts of South Africa, all with easy access to the main national roads, city centres, shopping centres, bus routes and taxi routes. The offices are clad in modern structural designs offering large and spacious interior and are suitable for various office set up. Beautiful garden landscapes and panoramic views complement the facilities and are a retreat for occupants. Specialist office buildings include the Sandton Convention Centre, Sandton City Office Tower and Twin Towers.

 

The offices, located in Gauteng, Eastern Cape and Western Cape, are leased out to third party organisations - subject to availability.

 

• Over 384,000m2 of office space
• 11 locations
• Over 400 tenants

Liberty Property Development

This side of the business specialises in property development, refurbishments, extensions and value-adding projects for the Liberty Group and third party clients across Africa. In three short years the capability has grown from being a start-up concern to one of the largest players in the market with some R5 billion worth of approved development projects on the table.

 

The company is presently involved in several projects, which include:
• The R1,7 billion rejuvenation of Sandton City complex
• R610m refurbishment and extension of Eastgate Shopping Centre.
• R184m extension to Alberton City Shopping Centre
• R300m construction of an Umhlanga Liberty Regional Office
• R312m extension and refurbishment project at Liberty Promenade Shopping Centre.
• Construction of two new hotels – the R100m Stay Easy Pietermaritzburg Hotel and the R262m Umhlanga Garden Court investment.
• A US$ 200m new mixed use development in Lusaka, Zambia

 

The Lusaka deal has empowered Liberty Properties vision to be considered as a serious player in the African market. The third party partnership is the company’s first project outside of Africa and this and other mandates give greater realisation to the company goal of growing this premium brand throughout Africa.

Asset Management

Liberty’s property fund represents one of the few investment options through which an individual can gain access to major shopping centres in South Africa. When you invest into this portfolio you buy into a collection of the most prestigious retail and hospitality assets on the continent, boosted too by a significant commercial presence.

 

The investment philosophy is to buy prime property with a long term view to develop and realise value. The portfolio is proactively positioned in line with these views, which are based on a sound investment process combining a top-down and bottom-up analysis of our investment environment.

 

Over the past five years (2004-2008), the company statistics paint a positive picture. The Liberty Property portfolio has averaged around 17.1% on a gross basis and has managed to beat inflation by over 10% and money market rates by 6%. In light of the current downturn, management does not envisage the portfolio returns dropping below average CPI and money market rates, even taking into account the negative factors hitting the commercial property market. The fund adopts a buy-tohold strategy and for investors with a long term view, continues to provide outstanding risk-adjusted returns across all product structures. As at 2009, over 250,000 people have chosen to invest in Liberty’s property linked policies.

Some History

The company originally made its debut as Rapp & Maister Real Estate Limited - a business which invested in properties primarily in Johannesburg’s CBD. The name was changed to Liberty Life Properties in 1989 after a full acquisition of its issued share capital by Liberty Life in 1976. Throughout the decades and its many acquisitions, Liberty Properties continues to be a leader in the South African property industry.

 

 

2009

Liberty Properties signs first deal with a third party organisation, outside South Africa within months of new mandate to build a fee earning business and expand the business to the rest of Africa. The deal involves developing a $200 million mixed-use development in Lusaka on behalf of Zambia’s National Pension Scheme Authority. This will be Zambia’s first fully enclosed shopping mall. Sandton City Shopping centre wins the Best Shopping Centre award for the 12th year in the 2009 Leisure Options Best of Johannesburg Readers’ Choice Awards. Greenacres Shopping Centre in Port Elizabeth wins a Diamond Arrow Award for the best shopping centre in the Eastern Cape.

 

2008

• R1.7 billion investment in the extension and refurbishment of Sandton City Shopping Centre announced.
• A new 10,000m2 wing at Alberton City is launched.

• Eastgate Shopping Centre wins The Star Reader’s Choice Awards 2008 for the Best Shopping Centre.

 

2007

Following a business restructure, Liberty Properties is renamed Liberty Group Properties (Pty) Ltd. Two new subsideries - Liberty Property Management (Pty) Ltd and Liberty Property Development (Pty) Ltd - are formed and registered.

 

Construction of new Liberty Life regional office in Century City, Cape Town is completed.

 

2006

Second phase of the hugely successful Liberty Midlands Mall launches in September.

 

2005
In June 2005, Liberty Properties acquires Main Street 9 (Pty) Ltd’s interest – in the Sandton City complex, Nelson Mandela Square, Alberton City, Southern Sun Sandton Sun, Intercontinental Towers Sandton City and Garden Court Sandton City.

 

2004

Liberty Life Properties purchases Liberty Promenade, located in Mitchells Plain, Cape Town. Sandton Square is renamed Nelson Mandela Square. A huge 6m statue of Nelson Mandela is erected on the Square in his honour.

 

2003

• Construction of the new Liberty Midlands Mall in Pietermaritzburg, KZN is completed.
• The remaining 50% share of Greenacres Shopping Centre is purchased, resulting in 100% ownership of the centre.

 

2000
• Liberty Life Properties changes its name to Liberty Life Group Properties.
• The Sandton Convention Centre is developed and opened in September.

 

In the 90’s
Refurbishment of Eastgate Shopping Centre begins in 1990, followed by the Sandton City refurbishment in 1992. Rapp & Maister Mixed use Development; Lusaka, Zambia Construction is unbundled in 1995 and subsequently purchased by Grinaker. Liberty Life Properties acquires Bedford Village in late 1997.

 

In the 80’s
The early 80’s sees a huge scale expansion of Sandton City including the addition of the Sandton Sun and Twin Towers. It also brings the start of an investment in hotels that continues into the 90’s and beyond. In July 1980 Liberty Life Group becomes the sole owner of Eastgate. In 1981 Greenacres Shopping Centre is developed. Alberton City is acquired in June 1985 and Liberty- Sentrum opens its doors for the first time in September 1985. August 1989 sees the name Rapp & Maister change to Liberty Life Properties.

 

In the 70’s
Liberty Properties is the first company to introduce the concept of shopping centres in South Africa. With the acquisition of Rapp & Maister Real Estate, Liberty Life also gains Sandton City, which is officially opened in October 1973. Eastgate Shopping Centre is opened in March 1979. At 86,000m2, it is far larger than Sandton City and twice as big as any other shopping centre in SA at that time.

 

The Norwood Pick ‘n Pay Hypermarket is acquired in September 1975, followed by the development of the Durban Pick ‘n Pay Hypermarket in July 1978. Concurrently, the group develops a large number of commercial properties, primarily on Braamfontein Ridge. These include Rennie House (an office building with residential suites on the top floors), and Libridge, which is purpose-built as Liberty Life’s extension to the Liberty Life Centre Head Office. The existing head office of SA Breweries (now SAB Miller) is acquired shortly thereafter, resulting in Liberty Life owning almost every property on the ridge.

 

These investments, along with several other buildings, give Liberty Life Properties responsibility for at least 174,000m2 of commercial property in Braamfontein, making it the single biggest landlord in the area - today, the business is responsible for over 1,367,714m2 of gross lettable areas across South Africa.

 

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